Rents in beachside suburbs of Sydney and the Gold Coast have surged by more than 40 per cent in a year.
New PropTrack data showed weekly increases of more than $600 in some postcodes.
The return of international students and the massive shift to Airbnb has seen rental vacancy rates in some cities fall to just one per cent, affecting both house and unit rents.
When it came to renting a house, Clovelly in Sydney’s eastern suburbs had the biggest jump of 46.5 per cent or $633 to a mid-point of $1,995 in the year to February, up from $1,362.
Middle Cove on Sydney’s lower north shore saw its rents soar by 44.7 per cent or $525 to $1,700, up from $1,175.
When it came to renting a house, Clovelly (pictured) in Sydney’s eastern suburbs had the biggest jump of 46.5 per cent or $633 to a mid-point of $1,995, up from $1,362
On Sydney Harbour, Rose Bay in the eastern suburbs saw its rents rise by 42.9 per cent or $600 to $2,000, up from $1,400.
The Gold Coast also became more dearer for tenants, with Paradise Point rents surging by 50 per cent or $425 to $1,275, up from $850.
At nearby Surfers Paradise, rents rose by 41.1 per cent or $430 to $1,475, up from $1,045.
A short drive away, Clear Island Waters, a canal suburb, saw its rents rise by 40 per cent or $400 to $1,400, from $1,000.
The Gold Coast had three suburbs in the top 10 for rent increases, with the other seven in Sydney.
Both areas have a tight rental vacancy rate of 1.3 per cent.
SQM Research managing director Louis Christopher said landlords were now listing houses on Airbnb and Stayz to capitalise on tight rental vacancies, reducing the supply of available stock for long-term leases.
‘You’ll see there right now, that there are more properties available on the short-term leasing market than what there are on the long-term leasing market in the city of Brisbane,’ he told Daily Mail Australia.
‘You’ll be shocked at the numbers. This is crazy. There has been this massive move towards short-term leasing on standard suburban stock, your standard, three-bedroom home.’
The Gold Coast also became more dearer for tenants. At Surfers Paradise (pictured looking from Currumbin Alley beach), rents rose by 41.1 per cent or $430 to $1,475, up from $1,045
Demand for short-term leases had surged since Australia reopened to international students in late 2021, shortly before overseas tourists were allowed back in again.
‘That demand would come from not just renters but it would come from overnight business people, holidaymakers, university students or anyone who just needs a property for the short term,’ Mr Christopher said.
The sharper rises in apartment rents occurred in regional areas north of Sydney.
Soldiers Point in Port Stephens saw its weekly rents rise by 42.1 per cent or $163 to $550, up from $387.
The Newcastle suburb of Glendale had a 50 per cent increase in rents, with the $150 rise taking rents to $450, up from $300.
Brisbane’s outer north had one entry, with the Bribie Island suburb of Banksia Beach, in the Moreton Bay area, seeing a 35.6 per cent or $160 increase to $610, up from $450.
Sydney had seven spots in the top 10 for rent increases, with the New South Wales Hunter region having two positions and Brisbane having one.
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At South Granville, in Sydney’s west, the median apartment rent surged by 58.2 per cent or $163 to $443, up from $280 – making it the suburb with the biggest percentage increase from a lower base.
